Q: "What's this stuff we keep hearing about these credit union "mega-me mergers" ? "
A: "Well, Senator, credit unions are a lot different now, than when you and I were growing up and still trying to do right."
Q: "It's those bankers after you again, isn't it!"
A: "Not really Senator. Here's the problem... "
A $400 million sucker punch?
✅ In response to the "$400 Million And No Toaster?" post [link], even our troll community seems a bit perplexed about the BECU/SAFE "mega-me-me" merger!
*This isn't a good deal for SAFE members, but not for he reasons stated. Their capital isn't going away. BECU has basically flat-lined on deposit and asset growth in the last few years, and they're not very profitable, despite being focused on profit. Their high operational expense ("Opex") ratio is 3.43% and rising; SAFE is 3.13% and declining. This is a scale and net income play for BECU. They'll have to hack expenses a lot get that horrible Opex down. And, their rates aren't great:
SAFE new auto, 5.19%, BECU 5.49%
SAFE used auto, 5.29%, BECU, 5.79%
SAFE HELOC, 6.75%, BECU HELOC, 6.99%
SAFE Personal loan, 9.04%, BECU 9.99% etc, etc..
SAFE 24 mo CD: 3%; BECU 2.23%
SAFE 12 and 18 CD: 2.55%; BECU 2.37% ...it goes on and on.*
😎 So, according to our troll-confirmed, NCUA financial data: BECU has higher operating costs, worse interest rates, and a slower growth rate than SAFE credit union!?!
😎 But the CEOs are cooing otherwise...
